HomeMy WebLinkAboutNo. 2285 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area (Lichtenbarger)r~
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RESOLUTION NO. 2285
RESOLUTION APPROVING AND ACCEPTING A COUNTEROFFER
FOR THE ACQUISITION OF PROPERTY IN THE
AIRPORT ECONOMIC DEVELOPMENT AREA ,
WHEREAS, under the authority granted by Ind. Code § 36-7-14, et seq. and in
furtherance of the Airport Economic Development Area Plan ("Plan"), the South Bend
Redevelopment Commission ("Commission") has determined that it is necessary to
acquire unencumbered fee simple interest in certain property located within the area
heretofore designated as the Airport Economic Development Area (the "Area") within
the City of South Bend, Indiana (the "City"), which property is more particularly
described at Exhibit A attached hereto and incorporated herein ("Property"); and
WHEREAS, on December 15, 2006, the Commission adopted Resolution No.
2284 setting the offering price (the "Offering Price") and authorizing staff to present an
offer to Albert O. Lichtenbarger and Marilyn H. Lichtenbarger as owners of the Property
(collectively, the "Owners") in an amount not to exceed the Offering Price along with the
payment of expenses incidental to the conveyance and determination of the title of the
Property; and
WHEREAS, the staff has presented the Owners an offer for the Offering Price
as authorized, which the Owners rejected; and
WHEREAS, the Owners and the Commission negotiated, at arm's length, a
Memorandum of Understanding entered into by the parties on August 1, 2006 (the
"Agreement") whereby the Owners agreed to sell the Property to the Commission subject
to the terms set forth therein and to the Commission's appropriation of funds and
completion of its acquisition procedures; and
WHEREAS, the Commission has completed its acquisition procedures for the
Property and sufficient funds are available for the purchase of the Property; and
WHEREAS, the Owners have presented a Purchase ,Agreement (the "Purchase
Agreement") to the Commission, the terms of which provide a counteroffer to the
Commission for the purchase of the Property; and
WHEREAS, the terms of the Purchase Agreement are consistent with the terms
of the Agreement, which a purchase price that exceeds the Offering Price as reflected in
Exhibit B; and
WHEREAS, the Commission has determined that the Purchase Agreement
represents the best outcome for the Commission and the citizens of the City; and
WHEREAS, the Commission desires to accept and approve the Purchase
Agreement and to authorize the President or Vice President and the Secretary or Vice
President to execute and attest, respectively, the Purchase Agreement on behalf of the
Commission; and
WHEREAS, the Commission finds that all procedures necessary for authorizing
and acquiring the Property pursuant to the terms of the Purchase Agreement have been
completed in accordance with Indiana law;.
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission that:
1. The Commission hereby finds that the consideration set forth in the
Purchase Agreement is reasonable considering the circumstances and that it is in the best
interest of the Citizens of the City and the South Bend Redevelopment District and
consistent with the purposes and requirements set forth in Indiana Code § 36-7-14 to
accept the counteroffer evidenced in the Purchase Agreement.
2. The Commission hereby approves and accepts the Purchase Agreement
and authorizes the President or Vice-President and the Secretary or Vice-President to
execute and attest, respectively, the Purchase Agreement and any other documentation
necessary to complete the acquisition of the Property and deliver them to the Owners.
Legal counsel for the Commission is further authorized to close the transaction on behalf
of the Commission and execute any incidental closing documents necessary to complete
the transaction.
ADOPTED at the Regular Meeting of the South Bend Redevelopment
Commission held on December 15, 2006, at 1308 County-City Building, 227 West
Jefferson Boulevard, South Bend, Indiana 46601.
CITY OF SOUTH BEND,
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South Bend Redevelopment Commission
South Bend Redevelopment Commission
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EXHIBIT A
PROPERTY DESCRIPTION AND PURCHASE PRICE
Counteroffer
Tax Key No. Address Owner purchase Price
Albert and Marilyn
04-1011-0179 52097 Olive Road Lichtenberger $140,995.00
(split parcel)
(See Legal Description Attached)
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EXHIBIT "A"
Project: Olive Road Brick Road
Parcel: 1 Fee
A part of the ~~'est Half of the Northwest Quarter of Section 19, Township 38 North, Range 2 East, German
Township, St. Joseph County, lndiana, and being that part of the grantor's land lying within the right-of--way lines
depicted on the attached Right-of-VV'ay Parcel Plat marked Exhibit "B", described as follows: Beginning on the
north line of said half-quarter section South 89 degrees 39 minutes 08 seconds East 442.51 feet from the northwest
corner of said quarter section, designated as point "12" on said Exhibit "B"; thence South 89 degrees 39 minutes 08
seconds East 54221 feet along said north line to the northeast corner of said half-quarter section, desib ated as
point "3" on said Exhibit "B"; thence South 0 degrees 27 minutes 23 seconds East 1399.47 feet along the east line
of said half-quarter section and the centerline of Olive Road to the northeast comer of a tract of land conveyed to
the City of South Bend i^ Instrument ++0334305, designated as point "158" on said Exhibit `B"; thence South 89
degrees 32 minutes 37 seconds ~'/est 55.00 feet along the north line of said City of South Bend tract to the point
designated "738" on said Exhibit `B"; thence North 5 degrees l2 minutes 48 seconds East 54.61 feet to the point
designated "3009" on said Exhibit "B"; thence North 0 degrees 27 minutes 23 seconds West 1245.00 feet to the
point designated "3005" on said Exhibit "B"; thence North 47 degrees 19 minutes 46 seconds b~'est 21.10 feet to
i the point designated "3004" on said Exhibit "B"; thence South 89 degrees 49 minutes 06 seconds West 112.00 feet
to the point designated "3003" on said Exhibit "B"; thence North 86 degrees 36 minutes 21 seconds ~b'est 240.47
feet to the point designated "3002" on said Exhibit "B"; thence South 89 degrees 49 minutes OS seconds West
100.00 feet to the point designated "3018" on said Exhibit "B"; thence South 89 degrees 49 minutes OS seconds
West 25.25 feet to the point designated "3001" on said Exhibit "B' ;thence North 0 degrees 20 minutes 52 seconds
East 30.01 feet to the point of beginning and containing 2.01 1 acres, more or less, inclusive of the presently existing
right-of-way which contains 0.882 acres, more or less, for a net additional taking of 1.129 acres, more or less.
This description was prepared for the City of South Bend, Indiana by DLZ Indiana, LLC and certified by James
11~1ichael Lietzan, Indiana Registered Land Surveyor, License Number 50475, on the 13`t' day of June, 2006.
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RIGHT-OF-WAY PARCEL PLAT Q ,SD 30fl
°o Prepored For The CITY OF SOUTH BEND, INDIANA
12 0 700D by DLZ Indiana, LLC {Job X0061202990) } .Scale 1" = 300
l; }g LINE 'PRB' BRICK ROAD o LIN 'B'
24 19 LINE 'B' 3oao R~W R W 3
3D01 3x03 N.E. Cor., W. 1/2, N.1'J, 1/4
40' R/W Section 19
3018 3004
30D2
3005
85+oa
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5~~, LINE 'B'
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\`~' LINE 'PRB' DETAIL
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RES. A
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3009 J
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~ 739
~ 75+00
738 55.00' 158
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70+40
Dimensions shown ore from the following listed Record Documents:
PARCEL: 1 OWNER: ALBERT 0. LICHTENBARGER A,ND Geed Record 767, Page 620, Dated 4-12-1973
CODE: - MA,RILYN H. LICHTENBARGER Instrument No. 0334505, Dated 6-4-2003
PROJECT: -
~D: OLI'/E /BRICK ~;:~~~f
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JNTY: ST. JOSEPH DRAWN BY: S.M.I-iARTMAN ~
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SECTION: 19 CHECKED 8Y: J.M.LIETZAN "`-`-_==1
LLC
IAN
TOWNSHIP: 38.N Hatched .Area !s the
Approximate Taking DATE: JUNE, 2006 A,
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EXHIBIT B
BREAKDOWN OF COUNTEROFFER
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The property owners hired David M. Witt to appraise the Property. His appraisal
finds that the house is worth $80,000.00. His appraisal indicates that the real property,
which currently contains a house, would have a residential value of $30,000.00. In
addition to that value, damages to the landscaping would exist. The Lictenbargers
received compensation near commercial value for a parcel they sold in relation to the
improvement of the Toll Road Bridge for in excess of $40,000 per acre. The property
immediately adjacent to their property is commercial property. The Lictenbarger
refrained from renting the house at the beginning of the year to anticipating the
completion of the transaction, but the transaction was delayed until now. The
Lictenbargers claimed a loss of rent for twelve (12) months of $650.00 per month for
$7,800.00 total. This transaction contemplates that we would purchase the remainder
interest that they have in the current right-of--way from the centerline of Olive Road the
edge of the right-of--way. The most significant difference between the Commission's
offering price and the counteroffer is the valuation of the land, which is determined based
upon the land's use. Although the land is zoned agriculture, it contains a residential
home that will be permanently damaged and is immediately adjacent to commercial
property.
Item Commission Price Counteroffer Price
Land $5,645.00 $48,195.00
Damages (House & Landscaping) $81,194.50 $85,000.00
Lost Rent $0.00 $7,800.00
Total $86,839.50 $140,995.00
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